Downward Pressure Fear and Uncertainty on Ethereum is Due to Waning Holders

E.G. Galano, the chief
infrastructure engineer of Infura, an Ethereum startup stated, “One of the
lessons learned in the [previous] Byzantium fork last year is that we shouldn’t
try to set the test net and main net fork at the same time,” further
stated, “Let’s start with setting the testnet fork and see how that goes
and find a period of stability before revisiting when to set the mainnet
fork.”

A lot of fear and uncertainty has
been spread regarding Ethereum, the No.2 cryptocurrency pointing to its scaling
issues. The criticism is genuine, and Ethereum is struggling due to network
congestion, and the utilization is above 94 percent. Therefore, it is becoming costly to run
applications. However, the biggest weakness of the ETH network is also its
source of strength.

The reason for the network congestion is because there are a lot of developers building their decentralized applications (DApps) on the blockchain network. The scaling issue is not permanent, and the ETH community has a solution, and they have defined a timeline in place.

The Ethereum is experiencing a
buying interest near the $165 level versus the dollar. The price is currently going higher, and it
is testing significant resistance near $180 and $182. A break was noted above the significant
bearish trend line, and resistance was seen on the 4-hour chart at $176 of
ETH/USD. A few bullish signs were seen indicating an upside break above the
resistance at $182.

The price of the Bitcoin
continues to be well bid, and it is gaining traction above $10,500
resistance. A swing low was seen at
$165, and the price went a little higher.
A $175 strength was recognized with the 50% Fib retracement level during
its last decline from the $183 high and $165 swing low. The pair is currently trading with a positive
bias beyond the $175 level.

Ethereum continues to dominate
when it comes to the number of developers.
The runners up in this regard are too far. The developer ecosystem of Ethereum is four
times more than that of Bitcoin. The
Ethereum community considers this as necessary as they believe it contributes
to the most value.

Scott Melker, Wolf of All Streets,
stated, “Price has found support in the green demand zone and is presently
working towards breaking descending (dashed) resistance. A move through that
line would indicate likely further price appreciation.”

The downward pressure on Ethereum
is due to waning holders. While the
Ethereum has bounced from daily lows, the downtrend might just be getting
started.

About The Author

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.